Question: What is PPI?
PPI is an acronym for Payment Protection Insurance, which is an insurance policy designed to cover a persons borrowing, should that person become unable to repay the borrowing due to an accident, illness or redundancy. It differs from other ‘Critical Illness Insurance’ type policies in that it only covers the loan, mortgage, credit card of finance agreement that it was purchased with, and not the persons other borrowings.
It was sold in many different guises, such as:
- LRC – Loan Repayment Cover
- ASI – Accident and Sickness Insurance
- CPI – Card Protection Insurance
- MRP – Mortgage Repayment Protection
- ASU – Accident Sickness and Unemployment Cover
And many other variations of the above.